Tanzania and Uganda are stepping up cooperation in the energy sector with plans to transform Port Tanga into a major regional energy hub, deepening economic ties between the two East African neighbours.
The two countries have signed a non-binding agreement with Vitol Bahrain, a subsidiary of global energy trading company Vitol, to explore the development of an integrated energy hub at Tanga. The proposed project is expected to support the storage, distribution and trading of petroleum products while strengthening the region’s energy supply network.
The development builds on growing energy cooperation between Tanzania and Uganda. Tanga already plays a strategic role in Uganda’s petroleum ambitions through the East African Crude Oil Pipeline (EACOP), which will transport Ugandan crude to Tanzania’s Indian Ocean coast for export. The Tanga marine terminal includes storage capacity of about 2 million barrels of crude oil.
The proposed energy hub could go beyond crude oil exports, with plans being discussed for expanded storage facilities, petroleum distribution infrastructure and potentially a refi nery. This could position Tanga as an important supply centre for several landlocked countries across East and Central Africa. For Uganda, the project offers another route to reliable petroleum supplies and regional energy infrastructure. For Tanzania, it strengthens the country’s position as a key gateway for East Africa’s energy trade.
The partnership also comes as both countries continue investing in cross-border infrastructure, including oil pipelines and electricity connections. Earlier this year, Tanzania and Uganda reaffi rmed plans to deepen cooperation in energy, infrastructure and trade.
If fully developed, the Tanga energy hub could attract billions of dollars in investment, create jobs and reduce the region’s dependence on distant sources of petroleum products.
For East Africa, the project represents more than a new energy facility. It could become part of a wider regional network connecting producers, ports, traders and consumers, while giving Tanzania and Uganda a stronger role in shaping the region’s energy future.